Due to the fact that credit cards,loans and unsecured lines of credit became much easier to qualify for between 1994 and 2004 bankruptcy rates started to soar. Some of the reports being released actually showed the rate of filing nearly doubled. Obviously the government decided to step in and reexamine the situation to assess the primary reasons that people were filing for bankruptcy. It became evident that something clearly needed to be amended to the current laws at the time to remedy the situation. These changes were designed to make sure that people and businesses indeed were filing for legitimate reasons and not abusing the system.
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Passed in the United States in 2004, the Bankruptcy Abuse Prevention and Consumer Protection Act was one of the primary laws put in place to curb the problem that was occurring. Going into effect in 2005, the law has already caused quite a shift in the financial and bankruptcy law proceedings. Aside from causing it to be much more difficult to complete a Chapter 7 Bankruptcy or even qualify, the new law brought forth much tighter rules as well as budgets pertaining to individuals applying for Chapter 13.
The law makes a major change encompassing the entire United States. It essentially requires debtors to have filed income tax for the previous four years prior to filing bankruptcy. Furthermore, debts in general are much more difficult to have included in the filing. Debtors must not only provide but prove good reason for the need to discharge their debt. It is also forcing debtors to take responsibilities for some of the debts as well.
While bankruptcy is not as easy to qualify for as it has been in the past it still remains a viable way to obtain a fresh start to individuals who clearly need it. The reality is the new laws are designed to simply give aid to those who really need it and weed out those who are abusing the system. Attorneys often provide a free consultation to help assess if you qualify for a bankruptcy and assist in getting your questions answered.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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